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Rochester Hills council approves Priority Waste change of control after CEO vows fixes and investment
Summary
After a detailed presentation and questions, Rochester Hills City Council voted 6-1 to consent to Priority Waste's change of control to TPG and new CEO Aaron Johnson, while directing administration to hold the company to contract performance commitments on fleet reliability, cart deliveries and reporting.
Rochester Hills City Council on June 22 approved the requested consent to change of control and assignment for the city's single-hauler contract with Priority Waste LLC, after hearing a lengthy presentation from Priority Waste's new CEO and a councilwide question-and-answer session.
Aaron Johnson, introduced by city staff, apologized for recent service problems and described what he said were immediate investments and operational changes since TPG's recapitalization and his appointment as CEO in early June. "It's not the service you pay for, and I expect better out of Priority Waste going forward," he told the council, listing actions including vendor payoffs, purchase of previously-rented trucks, an order for 91 automated side-load vehicles (about 30 received so far), hiring 41 drivers in recent weeks, and an order for 19,000 replacement carts to reduce backlog.
Johnson said the company also contracted a third-party call center to handle overflow calls and deployed technology such as on-truck cameras; he reported a recent week with 96% route completion and an 82% reduction in carryover work compared with the prior week. "If I don't hold up to that, you have every right to fire me," Johnson said, inviting city oversight and accountability.
Council members pressed on operational detail and financial risk. Councilman Blair said he remains skeptical about private equity ownership in utility-type services and asked what residents should expect for rates after current rate protections expire; Johnson responded that the firm is investing to reduce operating cost through modernized equipment and route automation and that his near-term focus is service restoration, not rate increases. Blair recorded a dissenting vote, citing concern about aligning investor incentives with resident interests.
Mayor Barnett and other council members said they had seen measurable improvements but emphasized the need for continued verification. The council resolution approving the change of control directed administration to continue working with Priority Waste to ensure compliance with contract terms and specific operational performance improvements, including fleet reliability and prompt resolution of outstanding cart deliveries. The motion passed with six votes in favor and one opposed (Mr. Blair).
The administration said it will continue monitoring Priority Waste performance, offer resident-facing opportunities for feedback at the Festival of the Hills, and maintain contract remedies available in the event of future breaches.
